Streamlining actions improve profitability from the first two
quarters
(Thomson Reuters ONE) - Tieto Corporation Press Release 21 October 2009 at 08.05 am EETThis is a press release without tables. You can download the completeversion using this link (pdf):http://hugin.info/3114/R/1348818/324745.pdfThird-quarter net sales declined by 10% and amounted to EUR 382.9(425.3) million. In local currencies, net sales declined by 6%.Outsourcing activity remained at a high level, but the market for newprojects has not picked up. Telecom and manufacturing industries werethe most challenging sectors whereas the development in the servicesectors, i.e. healthcare and welfare, public and retail sectors wasmore stable.Third-quarter operating profit amounted to EUR 26.3 (33.8) million.Operating profit excluding one-off items amounted to EUR 30.1 (36.7)million, representing a margin of 7.9% (8.6). Financial Servicesstarted to recover, whereas Telecom continues to suffer from weakdemand.Profitability recovered compared with the first half of 2009. Thanksto the savings programmes and currency effects, the cost base wasdown by EUR 62 million in the nine-month period. However, close tohalf of the decline was attributable to currency effects. All countrysegments delivered a positive operating margin. The number ofemployees declined during the quarter, resulting in a decrease inpersonnel costs. Profit before taxes totalled EUR 27.2 (30.3) millionand earnings per share amounted to EUR 0.25 (0.33) in the thirdquarter.As there are signs of stabilization in IT market, Tieto anticipatesthe market to bottom out during 2009. However, the potential pick-upin demand would affect the company's net sales with delay. ThereforeTieto's net sales and profitability outlook for the full year remainsunchanged. The company expects its full-year net sales and operatingprofit to decline from last year.President and CEO Hannu Syrjälä:"General market conditions remained unchanged. Tieto's net sales weredown by 10%, but even with lower sales we were able to deliver amargin of close to 7%. All country segments - Finland, Sweden andInternational - were profitable.The current year has been characterized by restructuring activitiesin Tieto. These actions were started last spring and are now payingoff. During the past nine months, we have lowered our cost base inline with our plans. Most of the planned streamlining actions havebeen completed; work to increase the offshoring ratio continues.Our outsourcing pipeline is strong, but it will take some time beforethese prospects turn into signed deals. Customers continue to be verycautious with their IT investments, focusing primarily on costsavings. Tieto is well positioned in its main markets, and with ournew operating structure, innovative offerings and customer-centricservices that aim to boost productivity and efficiency, we cansupport our clients through the downturn to growth."For further information, please contact:Hannu Syrjälä, President and CEO, tel. +358 2072 68729,hannu.syrjala(at)tieto.comSeppo Haapalainen, CFO, tel. +358 2072 63500,seppo.haapalainen(at)tieto.comReeta Kaukiainen, EVP, Communications and Investor Relations, tel.+358 2072 68711,+358 50 522 0924, reeta.kaukiainen(at)tieto.comPasi Hiedanpää, Manager, Investor Relations, tel. +358 2072 68088,+358 50 3782228, pasi.hiedanpaa(at)tieto.comTIETO CORPORATIONDISTRIBUTIONPrincipal mediaTieto is an IT service company providing IT, R&D and consultingservices. With approximately 16 000 experts, we are among the leadingIT service companies in Northern Europe and the global leader inselected segments. We specialize in areas where we have the deepestunderstanding of our customers' businesses and needs. Our superiorcustomer centricity and Nordic expertise set us apart from ourcompetitors.www.tieto.comThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 21.10.2009 - 07:05 Uhr
Sprache: Deutsch
News-ID 7170
Anzahl Zeichen: 0
contact information:
Town:
London
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 255 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Streamlining actions improve profitability from the first two
quarters"
steht unter der journalistisch-redaktionellen Verantwortung von
Tieto Oyj (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
